ImpactAssets releases its 2022 Impact Investment Fund Managers List
Industry’s first publicly available, searchable resource of impact investing fund managers zeroes in on some of the industry’s most impactful managers.
ImpactAssets recently released the ImpactAssets 50 2022 (IA 50), a free annual database for impact investors, family offices, corporate and family foundations and institutional investors that features a diversified listing of private capital fund managers delivering social and environmental impact as well as financial returns.
This year marks the eleventh edition of the IA 50, which now includes the IA 50 Emerging Impact Managers list and IA 50 Emeritus Impact Managers list. Across all three categories, 143 impact fund managers reported assets totaling $116.96 billion invested in a range of asset classes and impact themes. Fifteen managers selected in this year’s showcase reported assets exceeding $1 billion. An additional ten had assets under management between $500 million and $1 billion.
“We’re excited about this year’s IA 50, with its dramatic expansion and diversification of impact fund managers across a spectrum of strategies, geographies and investment targets,” said Jed Emerson, ImpactAssets Senior Fellow, IA 50 Review Committee Chair and Global Lead, Impact Investing with Tiedemann Advisors. “This group of managers reflects the intentionality of our manager selection process to provide investors with a resource that shines a light on the breadth and diversity of impact fund managers. These managers bring unique and informed perspectives to the challenges impact investing is addressing.”
Some Highlights from this year’s IA 50:
Impact Focus – About 18% of IA 50 managers across all three lists focused on clean technology, alternative energy and climate change, making it the top impact theme. Microfinance, low-income financial services, and micro-insurance (16%) comprised the second-largest impact focus. Notably, 12% of funds selected Diversity, Equity, and Inclusion as their primary investment theme. The most represented Sustainable Development Goals cited by fund managers included Decent Work and Economic Growth (21%), No Poverty (15%), Reduced Inequality (13%) and Climate Action (9%).
Diversity and Inclusion – While asset management as a whole remains overwhelmingly non-diverse—with approximately 2% of asset managers who are Black, Indigenous or People of Color — IA 50 fund managers are leading with diversity. This is most prevalent among IA 50 Emerging Impact Managers, where 50% reported that 50% or more of their investment professionals were people of color. In addition, 60% reported more than half of their investment professionals were women.
Asset Class – IA 50 fund managers drive their focus on deep impact chiefly in private markets. Managers reported that 55% of their funds are primarily private equity, while 36% are primarily private debt. Private Equity – Early Stage (US), with 22% of all funds, is the most represented focus of managers.
Impact and Financial Return – Although impact investing can offer a range of returns—from concessionary to above-market rates of return—IA 50 managers reported delivering both positive impact and competitive investment performance. A total of 74% of IA 50 managers target market rates or above market rates of return, and 97% reported delivering either in line or above their initial target returns. Emerging Impact Managers reported similar results, with 76% of managers targeting market rates or above market rates of return and 72% delivering either in line or above their initial target returns.
In addition, 25 of the IA 50 fund managers are signatories to the Operating Principles for Impact Management—a framework for investors to ensure that impact considerations are purposefully integrated throughout the investment life cycle—and 18 of the 25 have been verified to date, according to a separate analysis by BlueMark, a provider of independent impact verification services for investors and companies.
“The caliber of this year’s IA 50 lists is a product of the rigorous application scoring and analysis process that the IA 50 Review Committee has fine-tuned through the years,” added Sandra Kartt, CFA, Managing Director, Investments, ImpactAssets. “We’re thrilled to foster the continuing growth of these unique, innovative investing approaches addressing critical issues from climate to racial equity and gender equality.”
In addition to Emerson, the IA 50 Review Committee is comprised of impact investment experts and leaders, including Lauren Booker Allen, Senior Vice President, Impact Advisory, Jordan Park Group; Mark Berryman, Managing Director of Impact Investing, The CAPROCK Group; Ronald A. Homer, Chief Strategist, Impact Investing, RBC Global Asset Management (US) Inc.; Jennifer Kenning, Senior Advisor, IA 50 Review Committee and CEO & Co-Founder, Align Impact; Karl “Charly” Kleissner, Ph.D., Co-Founder of Toniic and KL Felicitas Foundation; Justina Lai, Chief Impact Officer and Shareholder, Wetherby Asset Management; Andrew Lee, Managing Director, Global Head of Sustainable and Impact Investing, UBS Global Wealth Management; Tony Lent, Co-Founder, Capital for Climate; Malaika Maphalala, CPWA® Private Wealth Advisor, Natural Investments, LLC; Cynthia Muller, Director of Mission Investment, W.K. Kellogg Foundation; Rehana Nathoo, Founder & CEO, Spectrum Impact; Stephanie Cohn Rupp, CEO and Partner, Veris Wealth Partners; Liesel Pritzker Simmons, Co-Founder and Principal of Blue Haven Initiative; and Margret Trilli, CEO and CIO, ImpactAssets.
The ImpactAssets Investment team led by Kartt conducted the application scoring and analysis process, and collaborated with Align Impact on fund analysis.
About the ImpactAssets 50
The IA 50 is the first publicly available database that provides a gateway into the world of impact investing for investors and their financial advisors, offering an easy way to identify experienced impact investment firms and explore the landscape of potential investment options. The IA 50 is intended to illustrate the breadth of impact investment fund managers operating today, though it is not a comprehensive list. Firms have been selected to demonstrate a wide range of impact investing activities across geographies, sectors and asset classes.
The IA 50 is not an index or investable platform and does not constitute an offering or recommend specific products. It is not a replacement for due diligence. To be considered for the IA 50 2022, fund managers needed to have at least $25 million in assets under management, more than three years of experience as a firm with impact investing, documented social and/or environmental impact and be available for US investment. Additional details on the selection process are available here.
The IA 50 Emerging Impact Managers list is intended to spotlight newer fund managers to watch that demonstrate potential to create meaningful impact. Criteria such as minimum track record or minimum assets under management may not beapplicable.
The IA 50 Emeritus Impact Managers list illuminates impact fund managers who have achieved consistent recognition on the IA 50.
ImpactAssets is an impact investing trailblazer, dedicated to changing the trajectory of our planet’s future and improving the lives of all people. As a leading impact investing firm, we offer deep strategic expertise to help our clients define and execute on their impact goals. Founded in 2010, ImpactAssets increases flows of money to impact investing in partnership with our clients through our impact investment platform and field-building initiatives, including the IA 50 database of private debt and equity impact fund managers. ImpactAssets has more than $2 billion in assets in 1,700 donor advised fund accounts, working with purpose-driven individuals and their wealth managers, family offices, foundations, and corporations. ImpactAssets is an independent 501(c)(3) organization.